Capital Value Research Articles

A Re-examination of Housing Investment Performance in Nigeria

Arising from the lack of a holistic performance analysis of housing investment in Nigeria, this paper re-examines the return-risk performance of residential property assets by focusing on the tier 1 property markets of Lagos, Abuja, and Port Harcourt. Data on the rental and capital values of residential property assets, comprising bungalows, blocks of flats, and detached houses, from 1999 to 2022 were obtained from estate surveying and valuation firms in the three locations. Mean return and standard deviation were employed to analyse return and risk profiles. Variations in return and risk profiles were further examined using a four-year sub-period analysis. The return-risk ratio was also employed to measure the attractiveness of the investment. The downside risk measure of the Sortino ratio was utilised to determine the risk-adjusted performance of the residential property assets. The results revealed that, on mean return and return-risk tradeoff bases, bungalow investments had superior performance compared with other property types across the geographic areas. When aggregated, residential property assets in Port Harcourt experienced superior return-risk performance relative to other locations. On sub-period analysis, the study established variations in the performance of the residential property assets across time periods and locations. On the risk-adjusted performance measure, it was found that bungalows in Lagos had the highest risk-adjusted performance. Detached house investments across the three locations were also found to exhibit low downside risk-adjusted performance. The study concluded that investors could gain high and attractive returns when making bungalow housing investment decisions with a huge potential for downside risk-proof returns. Moreover, investors could further expand this potential by concentrating more housing investment activities in Port Harcourt, as returns in this location are insulated from downside risk. However, investors should be cautious when investing in detached house assets across the three locations, as returns from this asset might be susceptible to downside risk.

Financial Performance and Shares of PT Bukit Uluwatu Villa TBK Before, During and After The Covid-19 Pancemic

Financial Performance of PT Bukit Uluwatu Villa Tbk was not healthy before the Covid-19 Pandemic, its performance got worse with the Covid-19 Pandemic and its performance only improved after new investors entered by putting in additional capital in the second year after the Covid-19 Pandemic ended. It is estimated that as tourism returns to normal, its financial performance will improve and its financial ratios will become healthier. Unhealthy financial performance results in a decline in the company's share price, and as a result the company's market capitalization value also declines. Improving financial performance by improving the capital structure and increasing sales as well as making efficiencies in the company's operational aspects. Improving financial performance will certainly boost the increase in share prices which have been slumping. Promotion/marketing strategies to increase sales should still pay attention to sustainability (sustainable green tourism marketing) in order to reduce (minimise) the negative effects of tourism on people's lives. Keywords: Covid-19 Pandemic, Tourism, Financial Performance, Share Performance, Financial Ratios

Do board characteristics matter in the relationship between intellectual capital efficiency and firm value? Evidence from the Nigerian oil and gas downstream sector

PurposeThe purpose of this study is to investigate the moderating effects of board characteristics such as board size, chief executive officer duality, number of board meetings, and diversity, on the relationship between intellectual capital efficiency and firm value in the Nigerian oil and gas downstream sector.Design/methodology/approachWe collected time-series cross-sectional data from eight (8) downstream-sector oil and gas companies quoted on the Nigerian Exchange Group for the period 2004–2020. We analysed the data using Prais–Winsten regression with panel-corrected standard errors.FindingsOverall, our results show no significant direct relationship between the modified value-added intellectual coefficient and our two measures of firm value (Tobin’s Q and Price Earnings Ratio (PER)). However, the board size is found to moderate the intellectual capital efficiency–PER relationship significantly and negatively, whereas board diversity significantly positively moderates the association between the modified value-added intellectual coefficient and PER. Our multi-theory framework, which blends clean surplus, agency, stakeholder, and resource-based theories is found to be relevant in underpinning this study.Research limitations/implicationsThe research relies on 17-year panel data for eight downstream-sector oil and gas companies. Consequently, future research within intellectual capital efficiency in Nigeria could incorporate related sectors like midstream and upstream to enable comparability and expand generalization.Practical implicationPolicymakers may adopt the study findings to serve as a robust empirical base to demand improved board diversity as a catalyst for boosting the potency of the intellectual capital efficiency-firm value relationship.Originality/valueFirstly, to the best of our knowledge, this study is the pioneer attempt to use board characteristics as moderators of the relationship between intellectual capital efficiency and firm value. Secondly, we develop and use a novel theoretical framework that combines clean surplus, agency, stakeholder, and resource-based theories to underpin the study.

FINANCIAL INTERMEDIATION AND ECONOMIC GROWTH IN NIGERIA

Objective: This study examined the impact of financial intermediation on economic growth in Nigeria. The study employed secondary data obtained from the Central Bank of Nigeria statistical bulletin from year 1987 to 2020. Method: The independent variable – Financial intermediation was proxied by credit to private sector, broad money supply, lending rate, market capitalization and total value of shares traded while the dependent variable – Economic growth was proxied by gross domestic product and per capital income. Autoregressive Distributed Lag (ARDL)/Bound testing to co-integration was used to establish the short run and long-run dynamic impact of financial intermediary on economic growth in Nigeria. Results: The study revealed a high speed of adjustment in the short run (Cointeq(-1) = (-0.9995; -0.981099) for the two models respectively. Similarly, for the GDP model, the study revealed that in the long run, credit to private sector (β1 = 0.0121); market capitalization (β4 = 0.05423) and total volume of shares traded (β5 = 1.62669) all established positively significant impact on economic growth in Nigeria at 5% significance level except broad money supply (β2 = - 0.00511) and lending rates (β3 = - 0.14194) which established negatively significant impact on economic growth in Nigeria at 5% significance level. However, for the PCI model, the study revealed that in the long run, credit to private sector (β1 = 0.002216); market capitalization (β4 = 0.095095) and total volume of shares traded (β5 = 1.915620) all established positively significant impact on economic growth in Nigeria at 5% significance level except broad money supply (β2 = -0.008476) and lending rates (β3 = -0.313843) which established negatively significant impact on economic growth in Nigeria at 5% significance level. Conclusion: The study therefore, recommends that management of banks should be encouraged to pursue policies that will deepen the efficient allocation of financial services for economic growth in Nigeria.

The effect of employees' perception of organizational justice on psychological capital and job satisfaction

Employees are the most valuable asset for industries. Therefore, the human factor's labour, effort, and management skills are significant added value for corporate sustainability from a sectoral perspective. Employees contribute to the development of corporate culture, the achievement of corporate goals, and, indirectly, the development of the national economy. In this respect, employees' success is essential for achieving the targeted corporate results. Employees' love for their jobs, adoption of the organization they work for, harmony with their colleagues, and trust in their supervisors will affect the success of their work. The organizational justice approach is a significant driving force behind this success. The primary purpose of this study is to measure the effect of employees' perceptions of organizational justice on their job satisfaction and psychological capital levels. The research covers 451 employees in the education, health, finance, industry, and service sectors. The data obtained from the employees were analyzed using SPSS and AMOS programs, and structural equation modelling was used. As a result, a statistically significant and robust relationship was found between employees' perceptions of organizational justice and their perceptions of psychological capital and job satisfaction. When a workplace environment that will enable human capital to flourish in businesses is created, this capital's current value and productivity will increase.

Based on knowledge capital value for disease cost accounting of diagnosis related groups.

The National Health Commission and the other relevant departments in China have initiated testing of the Diagnosis Related Groups (DRGs) system in 30 pilot locations since 2019. In the process of DRG payment reform, accounting for the costs of diseases has become a highly challenging issue. The traditional method of disease accounting method overlooks the compensation for the knowledge capital value of medical personnel. The primary objective of this study is to analyze the cost accounting scheme of China's Diagnosis Related Groups (C-DRG), focusing on the value of knowledge capital. The study initially proposes a measurement index system for the value of knowledge-based capital, including the difficulty of disease treatment, labor intensity of disease treatment, risk of disease treatment, and operation/treatment time for diseases. The Analytic Hierarchy Process (AHP) is then utilized to weigh the features of medical workers' knowledge capital value. First, pairwise comparisons are conducted in this stage to develop a two-pair judgment matrix of the primary indicators. Second, the eigenvectors corresponding to the maximum eigenvalues of the matrix are calculated to generate the weight coefficient of each feature. The consistency test is carried out after this stage. An empirical analysis is conducted by collecting data, including the full costs of treating three types of diseases-hip replacement, acute simple appendicitis, and heart bypass surgery-from one public medical institution. The empirical analysis examines whether this DRG costing accounting can address the issue of neglecting the value of medical workers' knowledge capital. The methods reconfigure the positive incentive mechanism, stimulate the endogenous motivation of the medical service system, foster independent changes in medical behavior, and achieve the goals of reasonable cost control. In the cost accounting system of C-DRG, the value of medical workers' knowledge capital is acknowledged. This acknowledgment not only boosts the enthusiasm and creativity of medical workers in optimizing and standardizing the diagnosis and treatment process but also improves the transparency and authenticity of DRG pricing. This is particularly evident in the optimization and standardization of the diagnosis and treatment processes within medical institutions and in monitoring inadequate medical practices within these institutions.

The impact of ESG performance on intangible assets and intellectual capital in the food and beverage industry

PurposeThis study investigates how environmental, social, and governance (ESG) factors influence intangible asset and intellectual capital valuation within the food and beverage (F&B) industry. By examining and contrasting global and European contexts, the research highlights ESG’s critical role in shaping the economic dimensions of sustainability across different regulatory environments. The results provide essential insights for stakeholders aiming to enhance corporate value through responsible business practices.Design/methodology/approachWe adopt a quantitative fixed-effects panel regression analysis for ESG performance and intangible asset and intellectual capital values. The correlations between these variables are explored both globally and in the European Union using 1,034 observations from 502 F&B companies.FindingsGlobally, higher ESG performance corresponds to lower intangible asset values, a trend not observed in the European Union. Further, high ESG performance is associated with a decrease in intellectual capital value, suggesting that internal organisational efforts in this area should be rewarded in terms of short-term value.Originality/valueThis study provides a new understanding of the relationship between ESG performance, intellectual capital, and the F&B industry operating environment, highlighting the complexity and challenges associated with integrating ESG practices.

The Great Thoughts on Human Beings by Karl Marx

Marxist philosophy does not prioritize the question of human beings in connection to the theory of capital and surplus value, the materialist dialectic and the socio-economic formation, or the proletarian class and socialism. The primary objective of Marxism does not pertain to the inquiry into the nature of human beings. However, Marx's ideas regarding human beings, mostly introduced during his early years, remain significant enough to be included in the body of human thought as a considerable doctrine. They hold great importance in the field of human sciences and in the pursuit of human freedom. As we celebrate the 200th anniversary of Karl Marx's birth, we will examine and assess the significant ideas that Marx had about human beings that are relevant to the current era: 1) Human beings are inherently human entities; 2) The natural world represents the intangible manifestation of human beings; 3) Human beings are distinct individuals, encompassing their actions and material circumstances; 4) The fundamental nature of human beings is derived from the amalgamation of social interactions; 5) The unrestricted growth of each individual is a prerequisite for the unrestricted growth of all individuals. These concepts are actually of immense magnitude. Presently, these ideas continue to serve as the fundamental principles of numerous human disciplines. These beliefs serve as the foundational worldview and methodological principles for numerous social theories in reality. The presentation of Marx's ideas on human beings, as shown in several published works, frequently varies. In light of the aforementioned five primary components, our objective is to faithfully adhere to the canonical works of Marx, refraining from incorporating any further insights beyond his original statements. This approach aims to provide an accurate depiction of Marx's own perspective on the nature of humanity.

Analysis of Determinants of Labor Absorption in Small and Medium Enterprises of Weaving Craft Industry in Sukarara Village, Lombok Tengah

This study aims to analyze the determinants of labor absorption in small and medium enterprises of the weaving craft industry in Sukarara Village, Jonggat District, Central Lombok Regency. The research is quantitative, involving a population of 40 woven fabric handicraft entrepreneurs in Sukarara Village. Data collection techniques included interviews, documentation, and distributing questionnaires containing questions about work culture, employee performance, and service quality. The analytical tool used was multiple linear regression analysis. The results of the data analysis show that capital and production value have a positive and significant effect on labor absorption in Sukarara Village, Jonggat District, Central Lombok Regency. Wages have a positive but insignificant effect on labor absorption. However, when considered together, capital, production value, and wages have a significant effect on labor absorption in the region.

Hacking Profits in Real Estate: The Influence of Capital Structure, Liquidity, and External Factors

This study seeks to empirically examine the influence of capital structure, liquidity, firm value, firm size, and external factors on profitability within companies operating in the property and real estate sector listed on the Indonesia Stock Exchange, utilizing sample data from 2018 to 2022. Through purposive sampling, 10 companies were selected as research subjects, employing panel data regression analysis. The findings indicate that liquidity and company size have a negative and significant impact on profitability. Conversely, inflation exerts a positive and significant influence on profitability. However, neither capital structure nor firm value significantly affect profitability. These results contribute to understanding the factors influencing the profitability of property and real estate sector companies within the Indonesian capital market context.

How Can Accountants Enhance (or Save) Natural and Cultural Capital Valuation? Engaging Academics: A Collaboration with CPA Canada and the Canadian Commission for UNESCO*

ABSTRACTAccountants should engage more with natural and cultural capital accounting to make tools more accessible and to ensure critical information is provided to decision‐makers. While ecological economists have continued to innovate and design tools, corporate‐level accounting has seemingly lagged behind. We argue that the time is now for accounting researchers and practitioners to come together to build upon these tools to advance a sustainable agenda. We examine possibilities through the novel lens of a recent Chartered Professional Accountants of Canada and Canadian Commission for United Nations Educational, Scientific and Cultural Organization (UNESCO) report that explores tools to measure natural and cultural capital at UNESCO designated sites in Canada. From here, we pose a variety of questions, critiques, and pathways for researchers and practitioners alike.

The Effect of Capital and Labor Wages on Income in Islamic Economics Perspective: A Case in CV of Ibu Kartini Serang District of Banten Province

This study aims to determine if labor wages and capital have a simultaneous impact on income in a company, as well as whether capital influences income just partially. The Kadugenep Lightning village’s Mrs. Kartini’s resume is the subject of this investigation. The approach used is quantitative and makes use of several linear regression methods. The traditional assumption test, partial test, or simultaneous test is the one that is conducted. While labor wages do not affect income, capital has a partial effect. Prob. capital value of 0.0000 (<5% or 0.05), t-count of 8.970087 > t-table 1.67793, and labor wages of 0.1485 (> 5% or 0.05) and t-count of 1.480135 < t-table 1.67793. Meanwhile, simultaneously, capital and labor wages influence the income of Mrs. Kartini’s CV. This is evidenced by the results of the F test with an F-statistic value of 0.000000 (<5% or 0.05) and the F-count is 89.68561 > F-table 4.05. The R-squared value is 0.79440 which means that 79.44% of the income variable can be explained by capital and labor wages and the rest is explained by other factors. In the production process, CV Ibu Kartini uses capital that is not contrary to Islamic law and has provided fair and proper wages to workers in an Islamic view. Keywords: MSMEs, capital, labor wages, income

Strategic management of human resources: Analysing the significance of human capital in the organization

Strategic management for human resources (HR) entails maximizing human capital's value and integrating with organizational objectives to maintain competitive advantage and performance. Limited emphasis on employee well-being, resistance to transformation, disregard for diversity and inability to adapt hinder efficient human capital development. This review improves the efficiency of organizations through strategic HR administration, analyzing and improving the value of human capital during longer-term achievements. Here, we explained the HR that includes HR management approaches with sustainability competitiveness, as well as HR framework levels with proper measurement and integrative framework for HR management. Following that, we described human capital such as economics and social significance for human capital, characteristics for human capital, leveraging human capital for a competitive advantage and workforce-centric organizations. Then, we demonstrate an interactive relationship framework for human and organizational capital. Strategic HR management improves organizational efficiency by leveraging the entire possibilities of human capital for long-term achievement and competitive advantages.

An Evaluation of the Startup Valuation Methods

As societal interest and enthusiasm for venture capitals remains stable and strong currently, the valuation methods play a more and more important role in assisting the venture capitalists to make more informed investment decisions. Based on this background, this research will focus on two typical valuation methods. They are Discounted Cash Flow (DCF) Analysis and Venture Capital (VC) Method and the applicability and challenges of these two valuation methods in venture capital investment area will be explored. This paper will also offer both theoretical insights and practical applications to analyze these two approaches by using case studies and empirical figures. The final results of the research show that each method has its own advantages and limitations so that the choice of which method to select depends on the specifics of the startups being evaluated. Lastly, the paper will end a summary of the main points made about each of the approaches and an outlook for future research directions in venture capital valuation field.

The Contribution of Subsistence Agriculture to the Livelihoods of the Smallholder Farmers in South Kivu Province, Democratic Republic of Congo

Subsistence agriculture in most cases is practiced on a limited space of land by farmers and it is dependent on human power that results into production of food consumed at household level, with little or no surplus for sale. A study about the contribution of subsistence agriculture to the livelihoods of the smallholder farmers in south Kivu province was carried out. A total of 303 smallholder farmers were randomly selected and interviewed to examine the effects of practicing subsistence agriculture on the socioeconomic status of the farmers. How the socioeconomic status attained by the farmers influenced their sustainable livelihoods was also assessed. Data were analyzed using means, frequency distribution, correlation, ANOVA and Chi square test. Thematic analysis was done on qualitative data. The farmers practiced shifting and primitive agriculture, intensive subsistence, and nomadic herding. There was a significant difference in the yields of crops grown (F = 0.0088; P = 0.05), while education and income status significantly affected the farmer’s socioeconomic status by practicing subsistence agriculture (P < 0.05). An average mean value of 3.12 for the components of the farmers’ livelihoods were exhibited, with the human capital mean value being highest (4.16) compared to natural, social and financial capital. The socioeconomic status attained had a significant effect on sustainable livelihoods of the farmers at P < 0.05. This implies that the smallholder farmers need to be trained by the agricultural extension workers better and sustainable methods of farming for higher crop yields. In addition, the Central Government though the Ministry of Agriculture, should avail improved seed inputs to the local community for better crop yields. All these will enable the smallholder farmers improve their socioeconomic status and at the same time attain higher sustainable livelihoods.

Analysis of the Role of Human Capital on Economic Growth in the Beijing-Tianjin-Hebei

Abstract This paper uses some human capital related data in the Beijing-Tianjin-Hebei region as empirical data to study the impact of human capital on the economic growth of the Beijing-Tianjin-Hebei region; based on the selected data, the principal component analysis method is used to analyze health human capital, education human capital, and comprehensive human capital. Measure and compare the human capital differences of the three places in Beijing, Tianjin and Hebei. Finally, based on the economic growth model, the three places are regression analysis, and the results of different types of human capital on the three places are obtained. The analysis results show that different types of human capital measurement values in the Beijing-Tianjin-Hebei region are indeed different. In general, the human capital in the Beijing-Tianjin-Hebei region contributes more to economic growth than physical capital, and the contribution of health human capital is better than that of education human capital. Keywords: Human capital, Economic growth, Regression analysis, Principal component analysis, Health; Education.

The Applicability of Fama-French Three-factor Model to Beijing Stock Market

This paper takes Beijing A-shares as a research focus, divides them into four groups by market value and book-to-market ratio, and uses Fama-French three-factor model to conduct relevant empirical test and regression analysis. The experimental results show that the three factors of the three-factor model have good predictability of the rate of return of Beijing Stock Exchange portfolio, and the volatility of the return rate is the most significant sensitivity to market fluctuations. The ratio of market capitalization and book value has a low explanatory power for the impact of stock risk-return fluctuation.

HISTORICAL AND ECONOMIC INTERPRETATION OF NATURAL CAPITAL

Natural capital can also be referred to as the scope of economic development opportunities. The depletion of resources usually increases the number of ways to overcome an economic crisis. Ensuring economic growth is not an obstacle to the development of a green economy, but failure to take into account damage to economic natural capital leads to poor economic decisions. Since the value of natural capital does not actually exist, in a narrow sense only the functions of providing natural resources are assessed. This leads to neglect of many functions of natural capital and on this basis causes the emergence of global environmental problems. This article examines historical and economic approaches based on the recognition of natural factors of production in revealing the capital nature of natural resources.

Analysis Of The Financial Performance Of Insurance Companies Before And During The Covid-19 Pandemic Based On Early Warning System And Risk-Based Capital

This study aims to provide empirical evidence regarding the comparison of the value of the Early Warning System and Risk-Based Capital in measuring the financial performance of insurance companies before and during the COVID-19 pandemic. The Early Warning System measurement indicator uses the claim expense ratio. Sampling using purposive sampling method and obtained a sample of 18 insurance companies listed on the Indonesia Stock Exchange (IDX) for the period 2017-2022. The type of data used is secondary data in the form of financial reports collected through the company's official website and the Indonesia Stock Exchange (IDX). The data analysis method uses non-parametric statistics, namely the Wilcoxon Sign Rank Test with the help of SPSS version 27. The results prove that there is a significant increase in the value of the Early Warning System during the pandemic compared to before the Covid-19 pandemic. The Risk-Based Capital value did not experience a significant decrease during the pandemic compared to before the Covid-19 pandemic. In addition, in this study, the Early Warning System is considered more accurate than Risk-Based Capital because it has a smaller standard error.

The Effect Of Company Size And Capital Structure On Firm Value With Profitability As An Intervening Variable

This study investigates the influence of company size and capital structure on firm value with profitability as an intervening variable in the Property and Real Estate sector companies listed on the Indonesia Stock Exchange during the period 2016-2022. Using a sample of 20 companies, this research employs a quantitative method with path analysis using the Eviews program. The results indicate that company size does not have a significant influence on profitability, while capital structure has a positive and significant impact on profitability. Company size positively and significantly affects firm value, whereas capital structure does not significantly influence firm value. Profitability shows a positive and significant effect on firm value and acts as an intervening variable between company size and firm value, as well as between capital structure and firm value. The theoretical implications of this research underline aspects of agency theory and the relationship among company size, profitability, and firm value. Practically, the findings suggest that profitability is more crucial than company size in determining firm value. It also emphasizes the need to optimize capital structure to prevent negative impacts on firm value.